Why EU is relaxing 2035 ban on combustion engine cars
What's the story
The European Union (EU) is considering relaxing its ban on sales of cars with internal combustion engines by 2035. The move comes amid pressure from governments and automakers who argue that the industry needs more leeway to reduce carbon dioxide emissions and meet EU climate goals. The proposal, put forward by the EU's executive commission, seeks to amend provisions of a 2023 law mandating average emissions in new cars to be zero or a 100% reduction from 2021 levels.
Emission targets
New proposal suggests 90% emissions reduction
The new proposal suggests a 90% reduction in emissions, which would mean that most cars would have to be battery-only. However, it also leaves room for some cars with internal combustion engines. The move has been met with mixed reactions from environmental groups and carmakers alike. While some see it as a pragmatic approach to balance climate goals and industry needs, others fear it could slow down the shift toward electric vehicles (EVs).
Industry response
EU's industry chief defends new proposal
EU's industry chief, Stephane Sejourne, defended the new proposal as a "lifeline" for Europe's auto industry. He said, "The European Commission has chosen an approach that is both pragmatic and consistent with its climate objectives." The revised target would allow automakers to sell a limited number of polluting vehicles—ranging from plug-in hybrids to diesel cars—after 2035. However, they would have to compensate for emissions these cars produce through two types of carbon credits.
Compensation strategies
Carbon credits and additional measures for automakers
The first type of carbon credit would be generated by using low-carbon steel made in Europe in car manufacturing. The second would depend on the amount of e-fuels and biofuels energy companies put on the market every year. Along with this, the commission also proposed other measures to support the auto sector such as "super credits" for small "affordable" electric cars made in the EU.
Financial aid
EU's financial support and emission targets
The EU has also proposed reducing the interim 2030 emission target for vans from 50% to 40%, and giving truck manufacturers more time to meet their own targets. To boost EV sales, medium and large firms will be required to green their fleets. At least 30% of new vehicles bought by companies will need to be zero- or low-emission, under country-specific targets with higher standards for richer nations.